pricefloorsandceilings

pricefloorsandceilings内容摘要：

WANT to trade Price ceiling RANDOMLY select buyers so that their demand matches supply 400,000 lottery losers Rights Assignment 2: Lotteries • quantity traded depends on the price regulation, and not on any of the characteristics of the lottery (., how many losers) A Lottery Allocating Goods to Buyers: Quantity and price are independent of demand 0 $1,400 1,200 1,000 800 600 Quantity of apartments (millions) Monthly rent (per apartment) D S Price ceiling D’ More than 400,000 lottery losers Rights Assignment 2: Lotteries • Quantity traded depends on the price regulation, and not on any of the characteristics of the lottery (., how many losers) • Quantity traded is less than petitive Rights Assignment 2: Lotteries • Quantity traded depends on the price regulation, and not on any of the characteristics of the lottery (., how many losers) • Quantity traded is less than petitive • Consumer benefit from the ceiling is calculated with average benefit • If demand is less price elastic than supply, then price ceilings (plus lottery) cannot enhance aggregate consumer benefit – with nonlinear demand, there is also a convexity term A Lottery Allocating Goods to Buyers: Consumer surplus and the Average Benefit curve (also contradicts Krugman and Wells, and most other textbooks) 0 $1,400 1,200 1,000 800 600 Quantity of apartments (millions) Monthly rent (per apartment) D (., MB) S Price ceiling AB Lowvalue buyers added to the market. AB() =1,300 AB() = AB() = Consumer surplus: unregulated Consumer surplus: regulated goods not supplied loss: goods misallocated Redistribution to consumers Society loses Consumer gain is less than the redistribution, and may be a loss. Allocation by Lottery Market Simulation Allocation by Lottery Market Simulation Allocation by Lottery Market Simulation Lotteries Followed by Resale: An Application of the Coase Theorem (also contradicts Krugman and Wells, and most other textbooks) 0 $1,400 1,200 1,000 800 600 Quantity of apartments (millions) Monthly rent (per apartment) D S Price ceiling Consumer surplus: regulated Highvalue lottery losers buy from lowvalue lottery winners. Profit from resale (gross) goods not supplied Amount lost by society Sec。